Long term secured loans

These days, many UK citizens are taking loans for various purposes. It may be to finance a new house, a new car, pay for their education or even their wedding. Most people don’t have enough money in their current accounts to directly pay for their purchases upfront. Hence, they prefer to take loans from lenders like banks or building societies. Many lenders offer short term as well as long term loans with affordable interest rates. Long term loans are a great option to invest in assets like car or property as their duration is of 20 to 25 years.

Understanding Long Term Loans

It’s rare for business or consumers to have sufficient cash-on-hand to invest on expensive and large items like car or house. In view of this, you can obtain long term loans. This type of loan can be repaid in 3 to 25 years. For an applicant to qualify they must have capacity to repay this loan.
Advantages of Long Term Loans
1. Big loan amount: long term loan allow you to opt bigger loan amount, amount approval depend on your requirement and eligibility.
2. Easy EMI to repay: The best advantage of long term loan is small EMI for large loan amount due to long tenure.
3. Lower Interest Rate: You get always low apr because of large loan amount, in some cases it requires borrower to provide collateral or assets as a security of loan.
4. Minimize Investor Interference: Issuing shares and seeking private investors are one of the common tactics to raise cash for possible investments. But this can also be a way of dividing the company ownership and redistributing of control. With long term loan, you are the opportunity to fund probable investment while sustaining the firm's control.

Long term loan can serves as your ultimate source of fund to purchase vehicle, property, finance business operations or other expenditures. If you’re looking for one, there are long term loans which do not require any credit history check. Meaning, even if you have bad credit history, you can still borrow money.

What Are Long Term Loans?

When you borrow money for any purpose, it is called a loan. And loans that have repayment duration of more than one year and less than 30 years are known as long term loans. This duration is specific and spread out for a larger number of years. The interest repayments are also likely to be the same over the loan term. This allows for budgeting. That means you know how much you pay in principal and interest payments every month. Not only individuals but also businesses can take these loans for their working capital assets like buying assets, inventory, and equipment.

Can I Get a Good Deal If I Have a Good Credit Score?

Yes, there are high chances of getting a great deal if your credit score is desirable. A great deal means a high principal amount and a low-interest rate. Every lender will check your credit file for your report and score. Those who have poorly managed their finances in the past usually have a poor credit score. If you belong to this category, getting long term loans for bad credit may be your only option.

What Types of Long Term Loans Can I Borrow?

Everyone Finance offer various types of long term loans for different individual’s needs. So there are loans you can borrow for a home, car, higher studies, wedding, business, and also home improvement. Let’s understand each of them in detail…

Can I Get A Long Term From You?

Yes, we offer long term loans specially designed for people with a bad credit score. We understand how tough it is to find a lender in such cases. Your application is either refused or you get an unfavorable deal. We eliminate both these issues and also a credit check. Thus, you can approach us anytime and our team of advisors will get back to you with a tailor-made deal.

What Benefits Can I Get From Long Term Loans?

Long term loans have quite a few benefits.
Higher Borrowing Limit:
With a long term loan, you can borrow a huge amount of funds, as high as £300,000. Coupled with flexible repayment options and a fixed time limit, these loans are useful to give your home a makeover, manage your wedding expenses, and more.
Lower Interest Rates:
The interest rate and APR remain low due to the longer term of the loan. Interest rate and other fees combine to form the Annual Percentage Rate (APR). The APR is different for each individual or business depending on collateral used, guarantor or no guarantor loan, a credit score of the borrower, and the period of the loan. Also, the interest rate is fixed during the tenure of the loan.

Rebuild Your Credit Score: If you take out long term loans and repay it monthly on time, it shows good credit behavior. Lenders send your repayment report to UK’s credit agencies every month. This helps rebuild a positive credit score.

Flexible Terms: If you can afford to pay more in every monthly installment, you can choose a shorter term, say for 10 years. But if you want to save money and reduce your monthly outgoings, you can spread out the cost over more years.

Fast Loan Approval: No more going to a lender to submit your loan application! Everything can be done online. You can get a fast loan approval within 2 to 5 days.

What Risks Am I Taking With Long Term Loans?

The potential risks with long term loans are:
Collateral as Security: Long term loans need you to pledge your asset to get the loan. This acts as a safety net in case you default on your payments. If it’s 3 months since you made your loan repayment, the lender can declare you defaulter and sell your home or car to recover his money.

Guarantor Required: A guarantor is a person who assures that they will repay your loan if you are unable to. This may be a relative or close friend. Many traditional lenders refuse to give no guarantor loans.

Long Term Commitment: Any form of debt gives repayment stress and depression. You may lose your job and along with that your source of income. Ensure to have a back-up plan in place to pay your long term loan.

More Interest: It's all well to opt for a 5-year loan instead of a 3-year one. But, you'll pay more interest in a longer-term loan. So choose wisely.